HIGHLIGHTS
- $6.8bn statutory net profit – down 1% on FY25
- $7.0bn net profit ex Notable Items – flat on FY25
- 12.5% CET1 capital ratio above target ratio of 11.25% in normal operating conditions
- 77cents final dividend per share, fully franked
Investing for the future
Anthony Miller, Chief Executive Officer
This year we’ve built momentum across the bank, delivering a solid result while investing in Westpac’s transformation.
In an uncertain economic environment, we’ve remained focused on supporting our customers. We’ve improved the customer experience, grown our core businesses and maintained a strong balance sheet.
The strong growth in deposits and lending was a highlight, at 6% and 5% respectively. We’ve deepened customer relationships and supported businesses to invest and grow, with Business and Institutional lending increasing 12% and 18% respectively. We also increased first party mortgage origination and this remains a priority. Revenue growth was strong in Business and Institutional, and up 2% in Consumer.
We are investing in our people and technology to support future growth, while taking a disciplined approach to costs. This included hiring more bankers to support businesses, opening three new regional service centres and introducing our Community Banking Service to 14 locations, helping us to reach more than 65,000 people living in these communities.
AI is an important capability for the bank and the take-up by our people is outstanding. 95% are using AI, helping them to work more effectively and spend more time with customers. We know trust and literacy are critical. We’re investing in the foundations required to scale AI responsibly, while continuing to focus on education and training for our people.
Across the year we achieved important milestones through UNITE, moving further into the implementation phase.
Supporting home ownership
Housing is one of Australia’s most significant economic and social challenges and as a bank we have an important role to play.
This year we helped more than 190,000 Australians purchase a home. While the housing market slowed as buyers adjusted to rising rates and policy change, this remains consistent with previous cycles.
Supply is the most important factor in solving Australia’s housing challenge. We have announced a target to facilitate $100 billion in housing related lending by 20301. The focus is to support new housing supply, social and affordable housing, opportunities for renters and pathways to home ownership.
Looking ahead
In a time of global uncertainty, the Australian economy is holding up relatively well with strong business investment supporting the medium-term outlook. This is evident across our Business and Institutional customer base where demand for credit remains strong. However, inflation remains above the Reserve Bank’s target range and interest rates are likely to remain elevated into 2027. This is presenting challenges for many households and businesses, although impacts are uneven across the economy. As households adjust to ongoing cost of living pressures, we remain ready to help those who need it.
We have made good progress this year and I am confident in the opportunities ahead as we simplify and transform the bank.
